The Role of Agriculture in the Nigerian Economy

8784 WordsSep 13, 201036 Pages
CHAPTER TWO LITERATURE REVIEW In this chapter of the research work, the review of related literature is presented under the following heading: □ Role of Agriculture in an Economy □ Importance of Agriculture □ Analysis of Selected Indicators of Agricultural Growth □ Agricultural Constraints □ Institutional Reforms □ Major agricultural policies in Nigeria from 1960-2005 □ Macro-economic variables affecting economic growth □ Government expenditure □ Investment □ Foreign investment □ The new Nigerian Agricultural Policy 2.0 The role of agriculture in an economy It is important to first define the term-Agriculture before talking about the role of agriculture in the economy. Oxford…show more content…
The agricultural policy for Nigeria, (Federal Ministry of Agriculture, 1987) outlined the traditional contribution expected of Nigerian agriculture. They include the provision of adequate food, a source of employment, foreign exchange, raw materials for domestic industries and the provision of a market for the product of the industrial sector. The contribution of agriculture to food supply could be measured indirectly via the volume as well as the value of food imports (Ihimodu, 1993). He also noted that a direct measure of food production is difficult because of lack of adequate statistical data. It has always been claimed that the agricultural sector supplied most of the food needs of the economy especially before and during the 1950s and 1960s. In recent times however, there has been some concern that there exists a widening gap between domestic food supply and total food requirements. Some studies have shown that while the demand for food has been growing at about 3.5% per annum, food production has been growing only at about 2.5% per annum (Agricultural Policy for Nigeria, 1987: 12). This has led to a significant increase in food imports both in absolute terms as well as in relative to the total import bill. To a large extent, the absolute value of import had risen overtime, as had the proportion of food in the total import bill. Generally, before 1974 the food bill constituted less than 10% of total
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